|By Marketwired .||
|March 10, 2014 08:24 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 03/10/14 -- CriticalControl Solutions Corp. (TSX: CCZ) today reported its financial results for the year ended December 31, 2013.
"Our operations improved in 2013 as we paid down $2.2 million in debt and made significant investments in new products and sales capability in the United States," said Alykhan Mamdani, President & CEO of CriticalControl. "The new sales we have already announced in Q1 2014 are early success indicators of our new product strategy."
Annual 2013 highlights
-- Total revenue was $45.7 million in 2013 compared to $46.8 million in 2012. A decline of $2.2 million in Q1 2013 compared to Q1 2012 was offset by $1.1 million in growth in the subsequent three quarters driven by an increase of $0.4 million in recurring revenue from Canadian and US Energy Services. -- Revenue from the Canadian Energy Services was stable at $12.6 million in 2013 compared to $12.8 million in 2012. Recurring revenue increased by $0.3 million and non-recurring revenue decreased by $0.5 million. -- Revenue from the US Energy Services business increased to $17.8 million in 2013 from $17.7 million in 2012. -- Revenue from the Corporation's Service Bureau Operations decreased by $1.1 million from $16.4 million in 2012 to $15.3 million in 2013. This decline was primarily related to Q1 2013.
Gross margin percentage
-- Gross margin percentage for the Corporation was 36.7% in 2013 compared to 37.2% in 2012. -- Canadian Energy Services gross margin percentage decreased from 57.1% in 2012 to 55.3% in 2013. The decline is attributable to a number of unrelated factors, some of which should be non-recurring. The decline was partially attributable to increased infrastructure associated with customer support and client relationship management necessary for additional growth in the Corporation's existing and new service offerings. -- US Energy Services gross margin percentage increased from 28.5% in 2012 to 30.0% in 2013. -- Service Bureau Operations gross margin percentage decreased from 31.1% in 2012 to 29.3% in 2013 due to a combination of factors impacting margins on hardware, software and related service agreements in Q4 2013 compared to Q4 2012, and a change in the mix of projects in Q1 2013 compared to Q1 2012.
Selling and administrative expenses
-- Selling and administrative expenses for the Corporation increased by $0.5 million from $14.3 million in 2012 to $14.8 million in 2013. The increase is primarily attributable to increased sales and marketing costs incurred to fuel future growth in the Corporation's US Energy Services business.
-- Research and development costs decreased by $0.1 million compared to 2012. The Corporation was required under IFRS to capitalize certain development costs starting in 2013, resulting in $424 thousand being capitalized in 2013. The impact of this was to normalize research and development expenses in relation to 2012. The decline for the year is attributable to an increase in Scientific Research and Experimental Development (SR&ED) tax credits recognized in 2013 compared to 2012. -- Finance costs in 2013 decreased by $0.5 million compared to 2012. The decrease was primarily attributable to a favorable swing in foreign exchange rates, decreasing debt levels and lower bad debt expense. -- Other operating expenses in 2013 decreased by $0.5 million compared to 2012, primarily due to non-recurring items in 2012.
Earnings and net earnings
-- Earnings before income tax for 2013 compared to 2012 remained stable at $0.3 million. -- Net earnings for 2013 was $0.2 million compared to $0.3 million in 2012.
Cash flow, working capital and debt
-- Working capital increased slightly to $2.3 million at December 31, 2013. -- Annual net cash from operating activities increased to $4.1 million in 2013 from $3.4 million in 2012. -- The Corporation paid down debt resulting in a drop of $2.2 million in total loans and borrowings, net of cash, from December 31, 2012 to December 31, 2013.
Outlook and forward looking statements
Revenue growth will be dependent upon the Corporation successfully exploiting products it has recently brought to market, innovation of existing solutions, and the introduction of new products in order to replace revenue from depleted or shut-in wells. Current interest in the Corporation's new products and innovations on existing products provides management optimism for growth in its Canadian Energy Services business segment. Management believes that the expenditure on building these new tools is essential for the Corporation's long term growth prospects and will fuel recurring revenue growth later in 2014 and beyond.
Continued growth in the Corporation's Canadian Energy Services business segment is dependent upon the continued success of the Corporation's sales effort, market acceptance of the Company's innovations and new products, the successful deployment of the Corporation's ProMonitor platform and the successful and timely development of its field data capture solution, all of which are risk factors that may negatively impact growth.
The Corporation is building a sales team and reinforcing its management team in the Appalachian basin to maximize penetration in the region with its products and services. The costs associated with this expansion are necessary for the Corporation's long term growth prospects and are expected to result in increased sales in 2014.
The Corporation is in the process of rolling out its existing technologies in the US and, given the investment in development, sales and potential channel partnerships, expects evidence of success to become material in 2014.
Growth from the Corporation's US Energy Services business segment is dependent upon acceptance of the Corporation's technology solutions, the success of its sales capability and the successful hiring and training of staff to manage growth, none of which can be guaranteed. These risk factors, if they arise, will have a negative impact on management's outlook and the Corporation's profitability.
Management has attempted to drive efficiencies from its existing Service Bureau Operations to become more competitive. Management has also attempted to target its solutions away from commoditized imaging and data entry services and into outsourcing day-forward business processes in order to improve margins.
Based on a change in operational management for the Service Bureau Operations and recent success in establishing new customer revenue, which is expected to ramp up over 2014, management is optimistic that it can generate revenue and profit growth in 2014.
Management's longer term outlook for the Service Bureau Operations is subject to the successful change in its sales strategy and the success of its sales capability, which cannot be assured. Failure to mitigate these risks would result in reduced performance from expectations. In addition, expected growth from a contract signed with a large financial institution for day-forward imaging is dependent upon the successful ramp up of volume resulting from a change in the client's current process, the timing of which carries uncertainty, which may in turn push revenue expectations to a later date.
In a world of escalating globalization, with an increasingly transient workforce, enterprises have difficulty maintaining their knowledge and are forced to focus on their key market advantages to remain competitive. CriticalControl provides these enterprises with secure and cost-effective solutions for the completion of document and information intensive business processes through an integrated offering of software, outsourced services and optimized business processes.
CriticalControl Solutions Corp.
President & CEO
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Oct. 22, 2016 06:00 PM EDT Reads: 8,949
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 22, 2016 05:30 PM EDT Reads: 462
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 22, 2016 05:30 PM EDT Reads: 958
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Oct. 22, 2016 04:00 PM EDT Reads: 3,840
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Oct. 22, 2016 04:00 PM EDT Reads: 3,648
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Oct. 22, 2016 04:00 PM EDT Reads: 3,579
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Oct. 22, 2016 03:45 PM EDT Reads: 1,441
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 22, 2016 03:45 PM EDT Reads: 639
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
Oct. 22, 2016 03:30 PM EDT Reads: 2,243
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Oct. 22, 2016 03:00 PM EDT Reads: 3,887
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
Oct. 22, 2016 02:45 PM EDT Reads: 1,496
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
Oct. 22, 2016 02:45 PM EDT Reads: 1,541
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Oct. 22, 2016 02:30 PM EDT Reads: 5,221
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 22, 2016 02:15 PM EDT Reads: 1,495
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 22, 2016 01:45 PM EDT Reads: 11,262